UN chief urges reform of global financial system; Supercharged inequalities, instability

United Nations, Dec 16: UN Secretary-General Antonio Guterres in his end-of-year address on Thursday called for reforming the international financial system, which has “supercharged” inequalities and instability across the globe.
“Today’s global financial system is supercharging inequalities and instability,” Guterres said.

He said the existing system allows credit rating agencies to undermine the ability of developing countries with good growth prospects to pay back debt and address their development needs.
“Meanwhile, inequalities keep widening. Social upheaval and polarization keep growing… This is a powder keg for social unrest and instability. It poses a clear and present danger to democratic institutions,” Guterres said. “It is time to clearly assume the need for reform of the international financial system.”